The price of oil continues falling amid the USD strengthening, poor macroeconomic data from China, expectations of sanctions been lifted from Iran and the oil output increase by OPEC countries.
However, demand for oil is traditionally increasing during the end of summer and in the beginning of autumn prior to the winter season.
Today, pay attention to EIA Crude Oil Stocks Change in the US.
Support and resistance
In the short-term, an upward correction towards 51.75, 54.25 is expected, after which a downward movement within the descending channel is going to continue.
In the medium-term, the price can test a local low at 47.50, the breakdown of which would lead to farther fall towards 45.30, 44.70.
Support levels: 49.50, 48.90, 47.50, 45.30, 44.70.
Resistance levels: 51.00, 51.75, 52.60, 53.15, 54.25, 54.75, 55.30, 56.00.
Open long positions from the current levels with targets at 51.75, 54.15 and stop-loss at 48.70.
Pending sell orders can be placed at 51.75, 54.25 with the target at 47.50.